In India mutual fund industry’s asset under management (AUM) has been growing at a rapid pace. The total AUM has reached around Rs 25.50 lakh crore in August 2019.
The asset under management of Debt, Equity and Hybrid schemes at the end of August 2019 stood at Rs 13.22 lakh crore, Rs 7.16 lakh crore and Rs 3.38 lakh crore, respectively.

We have thousands of Mutual Fund Schemes that are currently available in the market. It is a highly challenging task for any advisor / investor to select best mutual fund schemes out of these thousands of schemes.
There is no doubt that Mutual Funds are one of the best investment options for long term wealth creation. However, if you pick wrong MF schemes that do not match your investment objective(s) and time-frame then it could spell disaster for you.
Even if you pick right fund as per your investment strategy, it may not perform as per your expectations due to plethora of factors which are not in your control.
Another reason could be, your fund manager’s investment strategy may not click and results in not-so-great performance (or) your fund manager may change.
The Fund manager’s ability to generate EXTRA returns over and above the Fund’s benchmark has been put to test after recent SEBI’s re-categorization rules.
This has resulted in sudden in-flux of investments to Index based funds (Passive funds).
For example : The AUM of index funds has gone from Rs 5971.84 crore in August 2019 to Rs 6571.96 crore in September, and to Rs 7622.61 crore in October 2019.
Given this scenario, it’s highly challenging and tricky to pick the best & top mutual fund schemes to invest in 2020 & beyond.
In this post, let us analyze – Which are the Top rated Equity SIP Mutual Funds to invest for long term in 2020-2021? Best Equity Funds for 2020…
You may go through my previous reviews here : Best Mutual Funds for 2019 & Top Mutual Fund Schemes for 2018
Top 15 Best Mutual Funds to invest in 2020-21 | Best SIP Equity Funds
Below are the best Equity Mutual Funds to invest in India for 2020 & beyond…
- UTI Nifty Index Fund (Large-cap)
- Axis Bluechip Fund (Large-cap)
- ICICI Prudential Bluechip Fund (Large-cap)
- Kotak Standard Multi-cap Fund (Diversified)
- Aditya Birla Sun Life Equity Fund (Diversified)
- SBI Magnum Multi cap Fund (Diversified)
- Axis Mid-cap Fund (Mid-cap)
- Franklin India Prima Fund (Mid-cap)
- Franklin Smaller Companies Fund (Small-cap)
- Axis Long Term Equity Fund (ELSS – Tax Saving)
- Invesco India Tax Plan (ELSS – Tax Saving)
- Aditya Birla Sun Life Tax Relief ’96 Fund (ELSS – Tax Saving)
- HDFC Hybrid Equity Fund
- ICICI Pru Equity & Debt Fund
- SBI Equity Hybrid Fund

I have considered both, the past performance and risk ratios of mutual funds to shortlist top rated Equity mutual fund schemes.
Below image gives you an idea on the parameters (to know, how consistent the funds have been..?) that one can consider while shortlisting right mutual fund schemes.

Let’s now analyse category-wise best equity funds;
Best Large Cap Mutual Funds 2020-21
Based on the past performance & risk ratios, I have short-listed below large-cap funds for the review;

The final list of best Large Cap Equity Funds as per my analysis are; UTI Nifty Index Fund, Axis Bluechip Fund & ICICI Prudential Bluechip Fund.
- I have removed Aditya Birla Frontline Fund and SBI Bluechip Fund, which were part of my last year’s best equity large cap funds list. These are decent funds but the risk-return trade off is not in favor of actively managed large-cap funds.
- Most of the large-cap funds have not out-performed their benchmark indices in the last couple of years (after the implementation of SEBI’s re-categorization rules).
- If you have invested in an active large-cap fund or planning to invest, it is now prudent to go for large-cap based index funds than actively managed large-cap Funds.
- In this calendar year, most of the shares of giant and large cap companies have performed well and this is reflected in the performance of index funds like UTI Nifty index Fund. The only fund that has beaten UTI Nifty fund in the last one year (from the above list) is Axis Bluechip Fund.
- So, considering the past performance, risk-return trade off and cost, advisable to stick / switch to large-cap based index funds.
Best Multi-Cap Mutual Funds 2020-21
In my view, below are the best multi-cap / diversified Equity funds for 2020;
- Kotak Standard Multi-cap Fund
- Aditya Birla Equity Fund
- SBI Magnum Multi-cap Fund
I have shortlisted the above funds from a list of total 9 consistent top performers.

- From my last year’s list, I have removed Franklin Equity Fund. If you are an existing investor of this fund, you can give some more time for this one.
- Kotak Multi-cap fund has been performing well with relatively low standard-deviation. The fund has given around 14% returns in the last 10 years. It currently has an allocation of around 77% to large-cap stocks.
- Though Birla Equity Fund has not been able to repeat its previous best performance, its long-term track-record (23% returns since inception) makes me to retain it in the list. Let’s track its performance for one more year! The fund has an allocation of around 25% to mid/small cap stocks.
- SBI Multi-cap fund has been able to generate decent returns with low levels of volatility. The fund has an allocation of around 36% to mid/small cap stocks.
- You may also consider Parag Parikh Long Term Equity Fund for its good downside protection and recent performance. Do note that this fund has exposure to international equity markets.
- DSP Equity Fund has been performing well in the last few years. But, the fund’s performance has been very volatile. ICICI Multi-cap fund has given stable returns with low-risk profile.
- In case, you wish to avoid actively managed large-cap and multi-cap funds then can consider a combination of index funds like UTI Nifty Index Fund and UTI Nifty Next 50 Fund (this is more like a large-mid-cap oriented combo).
Best Equity Mid-cap Mutual Funds 2020
In my view, below are the best mid and small cap Equity funds for 2020;
- Franklin India Prima Fund
- Axis Mid-cap Fund
- Franklin Smaller Companies Fund
I have considered below Mid-cap Funds for the review;

The various important risk ratios of the above Mid-cap oriented Equity funds are as below;

- The fantastic performance of Axis mid-cap fund has compelled me to replace HDFC mid-cap opportunities fund. In case, you are an existing investor of HDFC fund, you may continue with your investment plan.
- Axis Mid-cap Fund, a relatively new entrant, has given fantastic returns of around 18% in the last 3 years, with very low risk profile. The fund has an allocation of around 77% to mid-cap stocks and 24% to large-cap stocks.
- Around 30% of Funds’ portfolio an exposure to Financial services and 20% to Consumer Cyclical Sectors.
- Franklin Prima and Smaller Companies fund have relatively lower risk profile than their peers and have generated consistent returns.
- Franklin Prima Fund has a current allocation of around 80% to mid-cap stocks.
- L&T mid-cap has also been one of the good performers. Do note that the Fund has got a new fund manager on board.
Best ELSS Tax Saving mutual Funds 2020-21
The final list of best ELSS Funds as per my analysis are;
- Axis Long Term Equity Fund
- Invesco India Tax Plan
- Aditya Birla Tax Relief ’96 Fund.

For a detailed analysis, you may kindly go through my article on Best ELSS Funds to invest in 2020-21..
Best Equity Hybrid Funds 2020-21
Below are the best aggressive Equity Hybrid (Balanced) Funds ;
- HDFC Hybrid Equity Fund
- ICICI Prudential Equity & Debt Fund
- SBI Equity Hybrid Fund
The important risk ratios of some of the top performing Hybrid Equity funds that I have considered for the review are as below;

- ICICI Pru Equity & Debt Fund has been a consistent performer with low volatility and has a good downside protection.
- Around 60% of fund’s equity allocation is in large-cap stocks.
- The Fund has 22.2% investment in Debt Securities.
- HDFC Hybrid Fund has given the best returns in the last 10 years when compared to its peers in the above list.
- Around 43% of fund’s equity allocation is in large-cap stocks & the fund has been little aggressive with its allocation as it has invested 20% of its equity portfolio in Mid/Small cap stocks.
- The Fund has 27.8% investment in Debt of which 8.6% in Government securities, 18.35% of funds invested in very low risk securities..
- The returns generated by SBI Equity Hybrid fund since its launch (1995) are around 16%. Though this fund generates decent returns in bull market, it does not have great downside protection when market’s performance turns negative.
My Latest Mutual Fund Portfolio details
I have my investments in four funds – HDFC Hybrid Equity Fund, Axis LTE Fund (Tax saving), UTI Nifty Next 50 Index Fund, Franklin Smaller Companies Fund. My spouse invests in Aditya Birla Tax Relief ’96 Fund for tax saving & wealth accumulation purposes.

Mutual Fund Capital Gain Taxation Rules for FY 2019-20 / AY 2020-21
Below are the capital gain tax rates on sale of mutual fund units for FY 2019-20;
- The STCG (Short Term Capital Gains) tax rate on equity funds is 15%.
- The STCG tax rate on Non-Equity funds (or) Debt funds is as per the investor’s income tax slab rate.
- The LTCG (Long Term Capital Gains) tax rate on equity funds is 10% on LTCG exceeding Rs 1 Lakh.
- The LTCG tax rate on non-equity funds is 20% (with Indexation benefit)

Related article : Mutual Funds Taxation Rules FY 2019-20 (AY 2020-21) | Capital Gains Tax Rates Chart
Some Important Points to ponder about Mutual Fund Investments :
- Identify your Goals : Majority of us identify the products first and then try to shortlist best investment avenues. An investor has to first identify his/her financial goals and then try to short-list best available options. This is applicable for mutual fund investments also.
- Set you Asset Allocation : Asset allocation is an exercise to invest across various avenues such as time-deposits, bonds, equities, gold etc., Set your allocation based on your investment objective, time-horizon and risk tolerance. For example : If your investment horizon is say 10+ years, objective is to wealth accumulation, you can consider an asset allocation of Equity to Debt as 60:40. Besides investing in Equity oriented products, it is equally important to invest in debt-oriented products (like PPF, EPF, VPF, Debt Funds etc.,) as well.
- Is it good to invest in multiple Schemes from same Fund category? – Kindly do not invest in too many funds especially within the same fund category. Over-diversification is not beneficial and may lead to high portfolio overlap.
- Consistency is the key parameter : A ‘good mutual fund scheme’ is the one that consistently manages to outperform its category returns and also it’s Benchmark’s. It is prudent to be with the consistent performers for long-term goals instead of churning your portfolio based on Star ratings or recent performances of the funds.
- If you observe, the recent stellar performances have come from equity funds managed by the fund houses like Axis, Kotak, Mirae, L&T…The funds managed by HDFC, Franklin & Birla have taken a back seat. But, do not churn your portfolio based on recent performances alone. Look for consistency of returns and then take decision!
- I am 60 years old, can I invest in Equity Funds? – Invest in Equity funds based on your future goals & financial resources and not based on your current age. For example – If you are a retiree (say 65 years) and have regular income which is more than your monthly living expenses, you can surely invest a portion of your surplus income in hybrid or equity oriented mutual funds.
- Importance of Portfolio Performance – If one of the schemes in your MF portfolio is not performing well, do not immediately churn your portfolio. Also, do not churn your portfolio very often based on fund star ratings. The negative consequences of regularly churning the portfolio are undeniable. Do track that scheme’s performance for sometime (say 1 or 2 years) before deciding to drop it from your portfolio. Sometimes, it is prudent to analyze the overall portfolio performance than to get too worried about individual fund’s performance. Also, have realistic return expectation from your investments.
- Shall I invest in Focused/Value oriented MF Schemes? – If you have created a core portfolio with say a Large cap fund / Index Fund, mid-cap fund (or index based funds) & Hybrid fund, you may invest a portion of your investible surplus in focused, value oriented, Funds of funds or Theme based funds. Ex : Parag Parikh Long Term Value Fund, Franklin India Focused Equity Fund, Axis Focused 25 Fund etc.,
- Shall I pick Index Funds? – If you are not comfortable investing in actively managed Funds, you can consider investing in Index based Funds. Ex : UTI Nifty 50 Fund (Large-cap), UTI Next Nifty 50 Index Fund (Large + Midcap) etc., It makes sense, to add one Hybrid Equity Fund to your Index based portfolio, to manage the volatility.
- Do I need to invest in Multi-cap Funds? – If you have a large-cap fund and a mid-cap oriented fund, I believe that its OK not to have a separate multi-cap fund in your portfolio. You can consider adding a Hybrid Fund to your portfolio. In case, one of your investment objectives is ‘tax-saving’ then can consider investing in an ELSS Fund (this can be treated as a multi-cap style fund, example – Birla Tax Relief Fund).
- SIP or Lump sum? – Systematic Investment Plan (SIP) inculcates financial discipline. However, it is not a fair comparison to equate SIPs with investing in a lump sum. Both have their own pros and cons. It is better to have SIPs in place and at the same time, you can make additional investments (lump sum) when you believe that markets are down.
- Suggest you not to remain invested in equity oriented funds till the goal target year. You may consider redeeming MF units by starting SWP (Systematic Withdrawal Plan)may be 2 to 3 years before the goal year. You can re-invest this amount in safe investment avenues. You may also re-balance your portfolio based on your Asset-allocation strategy (Equity : Debt allocation).
- DIY / Advisor – If you are a DIY investor, pick Growth and Direct plans. In case, you are not comfortable investing in Mutual funds on your own or do not have the required time, do engage with a fee-only Financial planner.
Continue reading :
- Mutual Fund Portfolio Overlap Comparison Tools
- What is Portfolio Tracking and Why Should I do it?
- List of all Popular Investment Options in India – Features & Snapshot
- RBI’s statistical data on Indian Household Investments & Savings (2018-19) | How & Where do we save & invest?
- When should you sell your Mutual Fund Schemes? | When to exit a Mutual Fund?
- How to get Mutual Fund units transferred upon death of a Unitholder?
Kindly note that the above list of top & best mutual funds 2020 is not an exhaustive one. Mutual funds’ returns are not guaranteed, their values/returns change frequently and past performance may not be repeated. MFs are subject to various market risks.
(Data Source & references : Valueresearchonline, Moneycontrol, Morningstar, Freefincal & The Economictimes) (Post first published on : 26-November-2019)
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Hi Sreekanth,
I am very big fan of your articles. I regularly follow your blog and it is one of the best blog.
I have small question, Can we redeem the mutual fund when Market is High and keep that money in FD sometime and when market fall again we can invest the same in Mutual fund. Do we really gain by this approach. I would like your suggestion on this.
Thanks,
Pavan
Dear Pavan,
Thanks for following my blog posts!
Is such TIMING possible? Do we really know what are the high and low points for entry/exit??
We can’t estimate 100 percent. But, We can identify when market are peak by the time we can redeem and in general before budget session/some unexpected situation 1-3 days before we know the market fall symptoms by the we can invest again.
Hope, My words make sense!
If we can identify, Is that good approach to go ahead?
Dear Pavan,
If it’s so easy then we would have seen many millionaires!
Considering that timing is next to impossible, Exit loads & taxes (if any) on redemptions.. this strategy can be very risky and may not be really beneficial.
Instead, one can ‘re-balance’ the portfolio (Equity Vs Debt) on periodic basis or when required .
Thanks Sreekanth for your valuable suggestions.
Hello Sreekanth,
Would it be advisable to invest a amount of around 3 lacs across 4 existing funds in equal proportions in a staggered manner in the next 3 months or should i invest it in lumpsum at one go when the markets hit a further low .
Funds:
ICICI PRU BLUECHIP
FRANKLIN INDIA EQUITY(will wait for SEBI final decision)
HDFC MIDCAP OPPURTUNITIES
HDFC HYBRID EQUITY
Please advise.
Regards,
Roy
Dear Roy,
Timing the market is next to impossible.
The markets may go up also right??
Yes, you can make additional investments in your existing funds if markets correct further, especially in Bluechip and Hybrid funds.
Related article : What is 200 Day Moving Average? | How to track DMAs? How to use them in Mutual Fund investment decisions?
Good morning!
Absolutely true Sreekanth.Appreciate your guidance and advise.
Have a nice day.
Best Regards,
Roy
HELLO SIR – NEED YOUR ADVISE WITHER I AM RIGHT OR WRONG ON BELOW SAID MF SCHEMES .
I HAVE BEEN INVESTING IN MIRAE ASSEST LARCG CAP FUND & IN AXIS BLUCHIP FUND FOR LAST ONE YEAR , RS.1000 EACH . PLS TELL ME DO I NEED TO CONTINUE OR STOP .
I CAN SAVE RS. 20000 MONTHLY ,NEED YOUR ADVISE WHERE CAN I INVEST THIS AMOUNT.
Dear PRITAM,
May I know your investment objective and time-frame??
Sir, I have been making the investment in following MF for the last three years (all Regular & growth). My horizen is 10 years :-
Frankline India Equity Finds 7k
Frankline Small Cos 10k – giving negative return
HDFC Hybridd 9k
Kotak Stand Multicap 5k
Aix LTEF 10k
Birla Frontline 7k
ICICI Value disovery 5k (now stopped) – 2L accumulation not withdrawn
ICICI Exports & oths serv. 10k (now stopped) – 3L – do –
UTI Mid cap 5k (now stopped) – 3L – do –
Lumpsum investment
Axis Eq Adv Fund 2L
Axis Bludehip 3.5L
HDFC FMP 2L
UTI FMP 2L
Spouse
ICICI Blue chip 10k
Mirac Asset Emerg. Bluechip 5k
DSP Bloack Tax Saver 9k
ICICI Value discovery 2k (now stopped)
Kotal Stand Multicap 2k (now stopped)
Lumpsum investment
Mirac Asset Large cap 3.2L
PPF, FD for sufficient amount
No Term Insurance and Mediclaim.
Kindly advise whether the SIP is correct or modificatin is required, also advise about investment for the the accumulation not withdrawn for ICICI value discovery, Exports & other srvices and UTI Mid cap.
Kindly also advise the good Term Insuance and Mediclaim as wife as several pre-diseases incl Thyroids, diabeties, Lung infections, Hernia etc.
Request for your kind help for best Mediclain and Term Insurance
Regards, Bhatt
Dear Mr Bhatt,
May I know if you both are earning members of your family?
Any specific reason/strategy for picking multiple MF Schemes?
Mr. Sreekanth
Thanks for response. Yes both are earning members. There is no specific reason for picking multiple MF scheme. Therefore need you expert advise about MF (time horizon 10 years), Mediclaim and Term
insurance.
Dear Mr Bhatt,
Franklin Small Cos, ICICI Value discovery, ICICI Exports & oths serv.
can be withdrawn.
Also, you may avoid investing in multiple schemes from same fund category like Large-cap. The portfolios of these funds may have high overlap and its not really beneficial to invest in multiple schemes.
Read : Mutual Fund Portfolio Overlap Comparison Tools
For term insurance, you may go through below articles and revert to me with more queries (if any);
* Top 5 Best Online Term Life Insurance Plans 2020 | Comparison & FAQs
* How much Term Life Insurance Cover do I need? | Online Insurance coverage Calculator
For mediclaim, you may consider Family floater plan for self+Spouse (or) can consider stand-alone mediclaim plans.
Read :
* Best Family Floater Health Insurance Plans – Details, Checklist & Comparison
* Latest Health Insurance Incurred Claims Ratio 2018-19 Data | Top Health Insurance Companies List
* Top Up Health Insurance Plans – Super Top Up Health Insurance Plans – Details & Benefits
Thanks for your comments. In fact, I am not expert in this this things and currently 50 years old having one daughter of 13 yrs.
Therefore, request to kindly also guide where to invest the accumulation of ICICI value discovery, Exports & others Frankline smaller co. UTI mid cap total more than 10L for long term around 10 years..
It is also requested to guide which scheme of large cap or others are overlapping and which are the best to continue so that others can be stopped. However, again where to invest the accumulation of proposed stop MF for long term period of 10 years.
For short terms, we have sufficient amt in FD, PF and PPF.
Regards
Bhatt
Dear Mr Bhatt,
Suggest you to kindly take help of a fee-only financial planner..
Hi Sreekanth,
Hope you are doing well and safe.
I want to know about Franklin MF, i have Franklin India smaller Cos SIP which i have stopped six month back.
currently total amount is around 80K, what should i do? do i switch to any other Fund or can wait.
i dont have any requirement for money but just to be sure that it will go in right way.
Let me know your view.
Dear Mihir,
I am doing well, thank you! How about you?
May I know do you have any other existing funds?
What is your investment horizon?
Hi Sreekanth,
i am fine..thank you.
yes i do have one other MFs like ICICI Pru focus, ALTE, SBI equity hydbrid, Sundaram mid cap etc, these all are currently active SIPs.
My investment horizon is for generate wealth so i can wait if you think i should.
let me know your suggestion.
Dear Mihir,
You can switch to Sundaram mid cap scheme from Franklin Smaller cos fund
Thank you for sharing very useful information
Dear Sree,
If we talk about debt funds just wanted to understand whether floating rate interest funds are more or less riskier than ultrashort/short/medium duration funds?
Regards,
Arun
Sir, I have been making the investment in following MF for the last three years (all Regular & growth). My horizen is 10 years :-
Frankline India Equity Finds 7k
Frankline Small Cos 10k – giving negative return
HDFC Hybridd 9k
Kotak Stand Multicap 5k
Aix LTEF 10k
Birla Frontline 7k
ICICI Value disovery 5k (now stopped) – 2L accumulation not withdrawn
ICICI Exports & oths serv. 10k (now stopped) – 3L – do –
UTI Mid cap 5k (now stopped) – 3L – do –
Lumpsum investment
Axis Eq Adv Fund 2L
Axis Bludehip 3.5L
HDFC FMP 2L
UTI FMP 2L
Spouse
ICICI Blue chip 10k
Mirac Asset Emerg. Bluechip 5k
DSP Bloack Tax Saver 9k
ICICI Value discovery 2k (now stopped)
Kotal Stand Multicap 2k (now stopped)
Lumpsum investment
Mirac Asset Large cap 3.2L
PPF, FD for sufficient amount
No Term Insurance and Mediclaim.
Kindly advise whether the SIP is correct or modificatin is required, also advise about investment for the the accumulation not withdrawn for ICICI value discovery, Exports & other srvices and UTI Mid cap.
Kindly also advise the good Term Insuance and Mediclaim as wife as several pre-diseases incl Thyroids, diabeties, Lung infections, Hernia etc.
Request for your kind help for best Mediclain and Term Insurance
Regards, Bhatt
Dear Srikanth,
I am investing in the below funds from last 3 years
1)Hdfc midcap opportunities fund
2)Franklin India Smaller Companies Fund
3)Icici prudential bluechip fund
4)Axis long term equity fund (For Tax saving)
Also have PPF account.
Whether these funds are doing good or shall I consider other funds?
Now I want to invest some more money for 8 years. So, I want to invest in hybrid equity & mid/small cap funds.
which one is better – SBI Hybrid equity or HDFC Hybrid equity.
Also please suggest a one mid/small cap fund.
Thank you
Dear Srikanth,
Previously i have invested in UTI Mid cap fund may be couple of years back. But it is giving negative returns. Shall i shift to L & T Mid or Axis Mid cap.
Time horizon for my new shift will be more than 7 year & mine is moderate to high risk investor.
Also planning to invest in PPFAS long term equity fund instead of Kotak Standard Multi-cap (As its AUM is more thatn 30000 crores, thinking that this may affect future returns).
Please advice.
Thanks,
Harinath
Dear Harinath,
May I know the MF scheme names that you have currently investing in…
Presently i am investing in Kotak Standard Multi cap & Axis Mid cap funds. Also i have stp from L&T value fund(returns are very less) to L&T mid cap.
Dear harinath,
You may switch from UTI fund to existing mid-cap funds.
If you are a moderate to aggressive investor, check if you have higher allocation to mid-cap funds (amount).
Kotak Fund is a decent one.
Sir,
Its wonderful and detailed description of mutual fund and your investment guidelines.
However i have queries , hope that you will reply will help it resolve.
1) In my portfolio i have Kotal Multicap fund invested in for last 4 years and gave return of 23 %. So i am thinking to withdraw it and put of some of in FD and buy stocks. Is at a good idea?
2) I have small cap fund i.e. Aditya Birla & L&T Emerging Business both given very moderate return in last 3 years. Hence, thinking for withdrawing it and want to invest in your suggested Axis Midcap & UTI next nifty 50.
Regards,
Dear Abhishek,
1 – What is the specific reason for this plan? Are you confident that you can earn better return by investing in direct equity?
2 – May I know your investment objective and time frame? Have you done the comparison check of these two funds’ performances with their peers and category avg returns??
Thanx for the reply –
1) Specific reason is that, i had a goal of 20 % return and it achieved and i already have SIP in Axis Blue chip & MO Multicap 35. So want to try stocks, as not invested so will buy some good quality large cap stocks.
2) Time frame is for 10 years for daughter education.
Yeah i have done it overall small cap funds are down since market condition is not good since 2 years and it will be like this for one more year. So switch to midcap fund seems good option.
Your views plz.
Dear Abhishek,
1) Ok. How about picking a large-cap based index fund?(Nothing wrong in investing direct Equity, suggesting just an alternative!)
Why do you want to save in FDs?
2) Past – yes, future – no one can say exactly what is going to happen!
Can you kindly share the list of schemes (names) that you are currently invested in!
1) Yeah already have large cap fund, so yeah want to try stocks.
I want to do emergency debt savings. Hence, FD.
2) Yeah just pretending for future you never know.
Axis Bluchip, MO focused Fund 35 , Parag Parikh Long SIP since last 2 year.
Lumpsum in Aditya Birla, L&T Emerging Business, L&T Infra Fund, Kotak Multicap.
Dear Abhishek,
Currently most of Axis funds are doing well and the trend may not remain the same.. next year some other Fund house’s schemes may outperform.
Suggest you to stick to your investment plan (Schemes).
Yes, you can surely have a look at index based funds.
PLEASE PROVIDE GUIDELINES ON HOLDING OF VODOFONE AND IN DEBT MUTUAL FUND OF FRANKLIN TEMPLETON MUTUAL FUND AFTER THEIR SEGREGATION.
Dear DEBASISH,
May I know what guidelines you require??
Hi Sreekanth,
I am investing 4K per month in below MFs from Jan 2014, However considering the Avg returns of 9% till date, I am thinking to change my MFs schemes. Can you please guide me where should I move my current investment (including new MFs) for another 10 yrs investment horizon ?
1. Aditya Birla Sun Life MNC Fund – Regular G
2. Franklin Indian Focused Equity – Regular G
3. Motilal Oswal Multi-Cap 35 – Regular G
4. Nippon India Multi-Cap Cap – Regular G
5. SBI Focused Equity Fund – Regular G
Waiting for your kind guidance.
Thanks,
Yogesh
Dear Yogesh,
Which funds are laggards in your portfolio?
Hello Sreekanth,
Good evening !
I have existing lumpsum investments in :
Franklin India short bond fund -60k
SBI Magnum Ultra Short Duration fund-60 k
HDFC liquid fund -10 k
(1) Can hold above mentioned funds as there is no urgent need(may require the same after 4-5 mths) .Please advise as in the case of vodafone issue where there has been a sharp drop in the Franklin India short bond fund.Please suggest if it is ok to hold all above 3 mentioned funds.
I also want to invest 2.5 lacs lumpsum towards a contingency plan.Where should i invest the same?
(2) I have a 5 k SIP ongoing in Parag Parikh LTE .Want to invest another 5 k with a horizon of 10 -12 yrs.Would it be ok to invest this 5 k in a index based fund.This is a portfolio i am creating gradually of fund categories not there in the core portfolio and at the same time serve as a retirement plan too.Your valuable suggestion would be appreciated.
Have a nice evening.
Thank You,
Roy
Dear Roy,
1 – If you need to withdraw in next 5 months, you may move out of Short and ultra short debt funds and stick to Liquid fund only.
For Contingency Fund – Consider Bank FD/Liquid Fund / Arbitrage Fund.
2 – Parag fund is fine. Which index type of fund are you looking at?
Hello Sreekanth,
1. Is it ok to remain invested in the short term funds as mentioned above if the money is not needed.
Pls suggest a liq fund to invest the 2.5 lacs in.
2. I am holding a active fund i.e.Parag Parikh LTE fund in the diversified catg/with a exposure to international mkts as well,would you advise a passive fund in the large cap or large +mid cap catg,intention being moderate risk and if so which fund would be a good pick.
Thank you,
Roy
Dear Roy,
1 – You may remain invested but do understand the risks associated with debt funds. For liquid funds with high allocation to Govt securities, you may consider Quantum liquid fund.
2 – For large-cap orientation then can consider index funds like UTI nifty 50 index.
Thank you for your valuable guidance Sreekanth.Appreciate the same.
Thank you,
Roy
Very nice and very informative article. Thanks you
Sir, I am investigating for last 7 years SIP in ICICI prudential Value Discovery Fund – Direct- Growth. I have around fund value 6 lakh in this fund through SIP. But for last 2 years I am very much disappointed but still continuing the SIP. Please guide what to do & if I stop SIP where to transfer. my target is 7 years ahead.
Dear Mr SWAIN,
May I know if you have investments in other MF Schemes? If so, kindly share the Scheme names..
Yes sir,SIP in ICICI Bluechip,Axis Blue Chip, HDFC Midcap & Lumsump in HDFC Equity, HDFC top 100.
Dear Mr Swain,
Your portfolio has 3 funds which are large-cap oriented, can avoid, you may stick one large cap fund or switch to a large cap index fund like UTI Nifty Fund.
HDFC Mid-cap and Equity fund are ok.
Suggest you to switch from ICICI Value discovery to any Equity Hybrid fund if your investment horizon is around 7 years.
Sir, I don’t know more about equity hybrid fund. Can you suggest any one sir.
Dear Mr Swain.. You may consider the equity hybrid funds listed in the above article..
Dear Shree
Thank you for your wonderful blogs. I have read and learnt quite a few things which otherwise would have been difficult for financially illiterate person like me.
I have been investing in Equities for last 5 years but without any direction, just picking up star rated ones from value research. Also I was unaware of importance asset allocation.
I am now in process of chopping and trimming the accumulated funds and have short listed the below.
1) Parag Parikh Long Term (Multi Cap) 2) HDFC Mid Cap 3) Mirae Asset Agg Hybrid.
I had HDFC Hybrid but my over reading and over enthusisam led me to switch to Mirae Asset Hybrid as one of the writers said that HDFC Hybrid has huge AUM which might affect the performance going forward. I thought since I am making a new beginning, i will go with Mirae Hybrid which is relatively new but looks promising. It possibly is most volatile of the category, but i think i will stick with it as of now.
For Debt category, PPF will be my core, but for balancing purpose and correct allocation of 60:40, i have shortlisted the below. I am trying to focus on safety of capital than returns on this one as i am already taking risk in equities.
1) HDFC Short Term 2) ICICI Pru Arbritrage 3) Franklin India Savings.
My investment horizon is about 10 to 12 years for retirement.
Kindly advise if i am on the right track can i treat Mirare Hybrid as my core portfolio in Equity?
Thanks
Vikas Vyas
Dear Vikas..You may kindly refer to our Q&A in Forum section..
Hello Sree,
Hope you are well!
Thanks for all your guidance in the past. I was investing in monthly SIP for 3 years till June’18. I stopped my SIPs before leaving the country and moving to Canada. I now want to start investing in monthly SIPs again. I haven’t yet come back home, so don’t have an NRI account yet. Can I continue investing again? Which funds do you recommend for NRIs
Had my SIPs in:
Axis long term equity fund
Franklin India Smaller companies Fund
SBI blue chip
SBI mid cap
Mirae Asset emerging blue chip fund
Aditya Birla Sunlife tax relief fund
I am 30 and and want to generate some money to be invested in buying a house in few years.
Hoping to hear your advise! Thanks a lot!
Dear Ksam,
If your Residential status is NRI now then you need to get it updated for your existing MF investments.
You can consider SBI bluechip, Franklin Smaller Cos fund and add one Equity Hybrid fund to your portfolio.
Hello Sir,
I have invested in the below Funds. Please advise if any changes required.My goal is wealth creation.
1) Aditya Birla Sun Life Frontline Equity Fund (G)
2)Axis Long Term Equity Fund ELSS (G)
3)HDFC Hybrid Equity Fund (G)
4)SBI Blue Chip Fund (G)
5)Axis Blue Chip Fund (G) – Started in 2020
Dear NT,
May I know your investment horizon?
Your portfolio has 3 large cap oriented funds (1, 4 & 5), these funds portfolios can have higher overlap which may not be really beneficial to you.
You may retain one large cap fund and diver the future SIP amounts to other funds 2 and/or 3.
Kindly read : Mutual Fund Portfolio Overlap Comparison Tools
Hi Sreekanth,
Happy new year.
I have been following you since 2015 and i think i was able to enter in mutual fund universe just because of your guidance.
I need your further guidance for one of my investment portfolio.
Age 30 Yrs, Goal Retirement, Aggressive investor
SBI Bluechip 14%
Axis Long Term Equity 16% (for retirement + tax saving)
Kotak Standard Multicap 36%
L&T Midcap 19%
DSP Small Cap 10%
Franklin India Taxshield 5%
I am thinking to do, complete amount STP from SBI Bluechip to UTI Nifty Index Fund (SBI Bluechip not giving good return from past 2 years).
Since small-mid cap is down from past two years i am optimistic that it may be the right time to start doing STP
– complete amount STP from Franklin India Taxshield to a Small cap (franklin ind smal OR dsp small cap OR axis small cap. I haven’t decided)
– 5% amount STP from Kotak Standard Multicap to a small cap (franklin ind smal OR dsp small cap OR axis small cap. I haven’t decided).
Requesting you to validate the above plan.
Dear Tejsingh,
Thank you for being a loyal reader!
Individually the above list looks good.
Actively managed large cap to Index based fund, makes sense.
You may continue with your plans regarding additional investments in Small cap fund. But, my suggestion would be to invest more in mid-cap and a small amount in Small cap fund.
Hi Sreekanth,
Please guide.
I had invested good amount in Franklin India Short Term Income Retail and Franklin India Ultra Short Bond Super Institutional. But today Franklin written down their exposure to Vodafone Idea hence losses of 4-7% in their NAVs today.
My goal was to redeem Frank india ultra short bond after 6 months and Frank india short term income retail in 2020 end.
I am not sure if fund will recover in this time span or suffer more losses.
What you suggest? Should i redeem or no action?
Dear Tej,
If you have slightly longer time period, would have advised you to hold on to your existing units.
You may redeem the units in Ultra debt fund, watch out for tax implications.
You may go through this good article written by fellow blogger @ Loss in Franklin Debt Mutual Funds: What should you do?
I am doing SIP on following around an year. Please suggest any switchings required
Kotak Standard Multicap -Direct Plan
Mirae Asset Emerging Bluechip – Direct Plan
SBI Smallcap -Direct Plan
Tata Retirement Savings Fund Progressive – Direct Plan
Dear Srinu,
Assuming your investment horizon is long-term, you may continue with your investments..
Thanks Srikanth for feedback. Plan is t grow for long term.
Hi Shreekanth,
Thank you very much for continuing your good work in spreading financial awareness among all of us.
I have been investing through SIP in below-mentioned funds:
1. SBI Bluechip (since 2016)
2. HDFC Mid-cap Opportunities (since 2013)
3. Nippon India Small-cap (since 2016)
But now I am having concern with these funds due to their poor performance in the recent past. Would you suggest me to stop my SIPs with the above funds? If yes, It would be great if you can suggest to me their replacements. Considering my financial goals aligned with the above funds are still 10+ years away.
Thanks and Regards
Dear Anil,
Thank you for your appreciation!
Though selective large-cap stocks have performed well, the broader market (mid/Small cap stocks) have beaten down badly in the recent past.
Hence, we see the not so great performance from mid/small cap stocks.
As your investment horizon is long-term, you may continue with your investments.
Do note that Nippon small cap has a high standard deviation, keep a track of it closely as there is a change in management (Reliance to Nippon).
Dear Sreekanth,
First of all, thank you very much for all the posts ,really helpful !
I have a query to you regarding Portfolio for my tow financial Goals. So planning to build a portfolio using SIP as below. Plan is to have funds separated for Goals(For ease).Other basics such as Life insurance & Emergency fund are already in place.
Goal 1 :
This is for wealth accumulation for my retirement 20-24 years from now.
Plan is to have a Portfolio with Equity to Debt ratio 60:40.
Debt portion will be managed by EPF.
1) ICICI pru Equity and Debt Fund : 11,000 PM
2) Parag Parikh long term equity fund : 9,000 PM
3) UTI Nifty Index Fund : 3,500 PM
Goal 2 :
This is for Kids education 18 years from now.
Plan is to have a Portfolio with Equity to Debt ratio 60:40.
Debt portion will be managed by PPF.
1) HDFC Hybird Equity Fund : 5,500 PM
2) Adity Brila Sun life tax Relief 96 : 5,500 PM ( Used as a muticap to fully use 80c)
Plan is to increase SIPs 5-10% every year.
Appreciate if you can check the equity part and suggest your thoughts.
Regards
Mithun
Dear Sreekanth,
Forgot to add that i had invested around 70k(via SIP) in Franklin India Blue chip fund,mainly for my Goal 1 over last 2 years. The performance has not been that great,do you still suggest to continue SIP or redeem the money and look for another large cap/index fund (UTI Nifty Index) already mentioned in my list)
I am aware that 2 years is not an ideal time frame to judge a fund,hence asking !
Dear Mithun .. Kindly refer to our Q&As in Forum section..
Sir, I am very glad to know your investments. Mine SIP is : Axis LT – 4000 Rs., Hdfc Hybrid – 4000, Franklin India smaller companies – 4000. It is very much same to yours. But since last one year, I am distuebed due to the performance of Hdfc hybrid and franklin smaller companies. Should I continue or stop them?
Dear Pratap,
May I know your investment objective and time-frame?
Do you invest in Debt products as well? (EPF/PPF/Debt funds/FD etc)
Hi Sreekanth,
I have been following your blog for more than two years now and let me tell you it has definitely helped me gain the financial literacy and invest in better way.
Following is my current MF portfolio, and I am investing in them through SIP from last 3 years for long term wealth creation (10+years)
1. SBI BLUE CHIP FUND – REGULAR PLAN – GROWTH
2. KOTAK STANDARD MULTICAP FUND -GROWTH OPTION
3. AXIS LONG TERM EQUITY FUND – GROWTH PLAN
4. HDFC HYBRID EQUITY FUND – REGULAR PLAN – GROWTH
5. NIPPON INDIA SMALL CAP FUND – GROWTH PLAN
6. ICICI PRUDENTIAL VALUE DISCOVERY FUND – GROWTH
Recently i have stopped SIP in option 5 and 6 due to their poor performance in last couple of years, but i am still holding current units.
Please give your suggestions on my portfolio. Also please suggest which MF I can add to this as i have stopped SIP in option 5 and 6. After reading this article I am planning to add an index fund to the portfolio (UTI Nifty Index Fund).
Dear Nikhil,
Thank you for following my blog posts and glad to know that you find the articles useful!
The First 4 funds are fine, you may continue with them.
Nippon Small cap – It is a high risk – high return kinda fund. With the new management in place (Reliance -> Nippon), keep a track of its performance for some more time and can take decision.
You may switch from ICICI Value discovery fund to Axis LTE if your tax saving u/s 80c is not full, else to 1/2/4 funds.
Hi Sreekanth,
Thank you for the feedback. Any suggestion on adding index fund (UTI Nifty Index Fund) to portfolio OR any other category which i should have in the portfolio?
Regarding switching from ICICI value discovery to other fund, what are the tax implications? What is the process as i have never switched any MF before. Is it like redeem ICICI value discovery fund and then invest in other options?
Dear Nikhil ,
The tax implications for Switch/Redemption are same.
One can switch between the funds if they are from same AMC, else can redeem the existing units and re-invest in the desired fund.
If you have to add an index fund then can replace large cap fund (SBI bluechip) with Nifty index fund.
Kindly read : Mutual Funds Taxation Rules FY 2019-20 (AY 2020-21) | Capital Gains Tax Rates Chart
Hello Sir,Thank you for your great Blog & it really helps in long run.I have some query related to my portfolio.I want to create a wealth for 1crore through SIP.
MY Time Horizone is in differet yrs -6 lakh(10 yrs from now child study),35 lakh(12 yr from now),60 lakh retirement (23 yrs from now).
My existing Portfolio- ELSS-1)SIP of 2k in L & T Tax Advantage fund Growth(3.5 lakh worth ow)
2)SIP of 2k in Axis Long Term Equity fund Growth(2 lak worth now)
3)SIP of 3k in Aditya Birla Tax relif 96 fund -G(started 1 yera before)
Large Cap- 2.5k SIP in Axis Blue-chip fund direct- G(started this Year)
Small Cap- 2.5k SIP in Axis small Cap Fund Direct-G(started this Year)
Multi Cap- a)3k SIP in Franklin India Equity Fund Direct-G(started 1 Year before)
b)3k SIP in Parag Parikh Long term Fund Direct-G(started 1 Year before )
Lump sum one time Amount invested 9 year ago into –SBI Magnum Tax gain (20k) & Sundaram BNP Paribas Tax saver (12k)
Please review above funds and suggest your comment incase of any changes or modification required?
Also I have shortlisted some dyamic fund to invest in this year which is-Kotak Dynamic Bond Fund and Franklin India Dynamic Accrual Fund?
Please suggest one best mid cap and value fund to be added into the above portfolio. Also suggest if any other kind of funds need to be invested or any changes in current portfolio is required to achieve my 1 cr target. I am a moderate kind of investor risk profile.
Dear Kumar,
May I know which are the Funds that you have ear-marked for your Retirement goal (23 years from now)??
What is the reason for shortlisting dynamic bond Funds? Your investment objective and time-horizon for these?
Do you allocate some savings to Debt products as well?? (like EPF/PPF etc)
Hello Sir,Thank you for coming back. So far i have not shortlisted any fund for my retirement goals.You can suggest your recommendation on this.
By looking ur shortlisted aggressive Equity Hybrid funds like HDFC,icici,sbi, i m dropping ideas for dynamic bonds funds and considering your points to add aggressive hybrid funds into my portfolio.Thank you for your great ability to pick the correct funds suggestion for us.
I am having bank FD ,also EPF and PPF worth more than 6 lakh.
please look my all the funds again and suggest your valuable suggestion.Also can i go for investment into some value based funds.please share your review on this and suggest some value based funds if required as per ur review and suggestion.
Thanking you
Thanks,
Raju
Dear Kumara,
You can ear-mark Axis Bluechip, Parag Fund & Axis LTE for your retirement.
Franklin Equity and one Hybrid Fund can be for your Kid’s education goal.
You may avoid value based /focused funds for now.
Do continue your savings in EPF/PPF.
Kindly read :
* Retirement Planning in 3 Easy steps (online calculator)
* Calculate how much you need to invest for your Kid’s Education
Thank you a lot for your response.SIP in Franklin India Equity Fund Direct-G(started 1 Year before) has not given good returns from last 1 year and is under performer.So can i switch to Kotak Standard Multi-cap Fund from Franklin India Equity Fund.what is your suggestion or do i need to give some more time or can be switched now.
Do i need to keep these funds for short and long term time horizon for my kids education. Franklin Equity and one Hybrid Fund can be for your Kid’s education goal or any more funds can be added.
I am also going to add the below funds to my existing portfolio within 6 months as per your suggestion that is-Axis mid cap funds,HDFC Hybrid Equity Fund,ICICI Prudential Equity & Debt Fund.
Apart from these above recommendation do you find any other existing funds which can be removed or added into the existing portfolio to make it more balanced. or it is enough for everything.
Thanking you
Best Reagrds,
kumar Raju
Dear Kumar ,
1 to 2 years can be a very short term to take decisions (reg switch).
No fund can continue to be at No.1 for long. Its not advisable to churn ones portfolio frequently.
You may give it some more time!
Kotak multicap is a good fund though!
The mentioned funds are fine..
Hi Sreekanth garu,
I really appreciate for your time and passion for providing suggestions on this funds and savings plan. I skimmed your website on top funds and managing portfolio. Based on that I considered to go with below funds Large & Midcap and diversifying the portfolio in different sectors and institutions.
Age: 35 with 2 kids (5 yrs, 1 yr)
Reason– Long term, may be for kids
Want to invest 25k/month in PF’s (PPF) & 25k/month in MF’s
I don’t foresee any short term or long term financial needs. So just saving for any use after 10/15 years.
1. Mirae emerging Bluechip Fund 10000 Banking/Finance, Pharmaceuticals, Oil & Gas — ICICI Bank, HDFC Bank, Axis Bank, Reliance, Voltas
2. Axis Bluechip Fund – Growth 5000 Banking/Finance, Technology, Oil & Gas –HDFC Bank, Kotak Mahindra, ICICI Bank, Bajaj Finance, Reliance
3. Axis Midcap Fund 5000 Banking/Finance, Retail & Real Estate, Chemicals — Info Edge, Avenue Supermar, City Union Bank, Bata India, Astral Poly Tec
4. Kotak Emerging Equity Fund 5000 Banking/Finance, Chemicals, Manufacturing– Supreme Ind, PI Industries, Ramco Cements, Coromandel Int, Atul
Please provide your suggestions? Do I need to change any or add/delete new.
Any plan I need to consider for retirement?
Thanks in advance,
Raje
P.S: I am open for suggestions, so anyone who see this, kindly provide your valuable inputs.
Dear Raje,
Thank you for your appreciation!
I am assuming that you have sufficient insurance cover (life/health).
May I know if you are a new MF investor?
Thanks for responding back. Actually I started savings in MF, LIC and FD 10 years back and used all the money including EPF recently and starting from scratch now. As you mentioned I am planning to have 5L as FD by EOY and want to go with 25k in debt(PF) and 25k in MF- monthly.
Also planning to take term insurance for 1 cr, (50% from LIC and 50% from private institutions).
Dear Raje,
The listed funds are good ones individually.
But, my observations are;
Mirae fund is a Large+Mid-cap based fund. Axis Bluechip fund is a large cap oriented one. Though the current Portfolio overlap between these two funds is around 20%, there can be chances that the % may increase in future.
You may also think of a large cap based index fund like UTI Nifty index fund instead of an actively managed large cap fund like Axis bluechip.
3 & 4 funds are mid-cap oriented funds. So, given a choice, I would pick Axis Mid-cap and add one Hybrid Equity fund instead of adding one more mid-cap fund to the portfolio.
Thanks Sreekanth garu. Went with below Funds in SIP basis from Jan 2020 onwards
Long Term
1. Mirae emerging Bluechip Fund 10000
2. UTI Nifty Index Reg-G 5000
3. Axis Midcap Fund 5000
4. HDFC Hybrid Equity Fund Growth 5000
Wish you and everyone a happy new year
Dear Raje,
Happy new year to you too!
Note that the funds’ portfolio overlap between 1 & 2 is around 40%.
Hello Shrikant,
Nice Article. I have a question regarding your portfolio where “Franklin Smaller Companies Fund” is available. With last 3-4 years horizon, there are -ve returns.
Is there any reason why a investor should continue in this fund?
Dear Sawa,
Overall, the mid/small cap stocks have been beaten down out of shape in the recent years (1-2 years). This has negatively impacted most of the mid/small cap equity funds (baring a very few funds).
Though this Fund’s recent performance has been not up to its mark, I believe that this is not the right time to make a switch, will give it some more time. Let’s hope it regains its past glory..
This fund may not be an outperformer, but can give decent returns with good downside protection.
Hello Sreekant,
Thanks for your reply and i totally agree with you.
Actually i dont have any direct small/mid-cap funds in my portfolio.
I have only 2 MF’s and luckily those are little in-line with your folio.
1- UTI Nifty Index Fund Direct Growth
2- HDFC Hybrid Equity Fund – Direct Plan – Growth Option
I am in confusion mind, If i really require a small/mid-cap in my portfolio.
My vision is for Retirement accumulation & Child Education from +2 classes. Target for Child education is for 10/11 years.
Is there anyway i can connect with you?
Dear Saswa,
In case, you would like to have a slight exposure to mid-cap then can consider something like Mirae Emerging Equity Fund. But, the overalp between this fund and UTI nifty index fund is around 40% 🙂
May be an actively managed multi-cap fund makes sense considering your time-horizon of 10 years.
You may reach me through contact page…
sir, I am investing in the following funds kindly advice because i want to switch from those
UTI MID CAP FUND- 1500
FRANKLIN SMALLER COMPANIES FUND -1500
FRANKLIN HIGH GROWTH COMPANIES FUND- 2000 PER MONTH
NOW WANT TO SWITH FROM UTI MID CAP TO AXIS MID CAP/AXIS LONG TERM EQUITY FUND, HOW CAN I SWITCH FROM UTI TO AXIS ,KINDLY GUIDE ME
Dear BOINA,
May I know your investment horizon?
Hi Sreekanth,
Thank you so much for this informative and valuable article.
I have very limited understanding of mutual funds.
Based on your article and suggestion, I started investing since 2016 with Franklin India Equity Fund and ABSL Frontline Equity Fund and gradually added more funds to my portfolio.
Below are the details of my portfolio.
1. ABSL Frontline Equity Fund – 2000
2. Franklin India Equity Fund – 2000
3. Franklin India smaller companies fund – 1500
4. Reliance/Nippon India small cap fund – 3000
5. Mirae emerging bluechip fund – 2000
6. Hdfc Hybrid fund – 1500
7. Hdfc Equity fund – 2000
8. Axis long term equity fund – 1500
My overall portfolio value is around 6.5 lac till date.
Now, post sebi reclassification of funds and your above article I want to completely reshuffle my portfolio.
I would like to restrict my portfolio 4 to 5 funds only.
My objective is to create decent return and time horizon is over 10 years.
Request you to please advise me which fund I should exit from current portfolio and which new fund I should add.
Dear Jitendra,
Thank you for following my blog posts since 2016!
How has your experience been as a mutual fund investor?
Below two funds are fine.
Hdfc Hybrid fund – 1500
Axis long term equity fund – 1500
You may retain either of HDFC / Franklin Equity fund (preferably hdfc).
Consider having either of Birla frontline or Mirae fund. (These two funds portfolios have a overlap of around 45%).
You may retain one small-cap fund.
Hi Sreekanth,
Thank you for your quick and valuable reply.
It was really great learning experience as mutual fund investor as I had no idea about mutual funds when I started investing.
just based on your suggestions I remained invested.
Thank you so much once again for all your efforts to make understand basics of mutual fund for new investors like me.
Dear Jitendra,
Thank you for your appreciation and do keep visiting ReLakhs.com!
Kindly share the articles with your friends and well-wishers!
Hi Sree,
I am 70 years old & retired. Please advise if my investments are alright in the past 6 months:
1) Franklin India Low Duration Fund – Growth Plan 6,00,000 return 1.25%
2) Franklin India Short-Term Income Plan-Growth 6,00,000 Return 0.47%
3) Franklin India Ultra Short Bond Fund – Super Institutional – Growth 15,00,000 – Return 4.94%
4) ICICI Prudential Asset Allocator Fund – Growth 15,00,000 – Return 4.47%
5) ICICI Prudential Long Term Bond Fund – Growth 9,50,000 Return -0.07
6) ICICI Prudential Ultra Short Term Fund – Growth 9,50,000 Return 3.48%
7) Nippon India Balanced Advantage Fund-Growth Plan-Growth Option 5,00,000 Return 0.98%
8) Nippon India Gilt Securities Fund -Growth Plan – Growth Option 14,00,000 Return 1.70%
9) SBI EQUITY HYBRID FUND – REGULAR PLAN -Growth 9,00,000 Return 3.92%
10) SBI MAGNUM MEDIUM DURATION FUND – REGULAR PLAN – GROWTH 8,00,000 Return 5.20%
11) SBI MAGNUM ULTRA SHORT DURATION FUND – REGULAR PLAN – GROWTH 9,50,000 Return 3.07%
Total 1,06,50,000 1,09,68,612 Return 2.99% Annual 6.05
Dear Anoop ji,May I know your investment objective(s) and time-horizon for these investments?
Thanks Sree for coming out with this article well on time.
I am 41, salaried individual and have investments in direct plans of following funds based on your recommendations in earlier blogs ( all long term goals > 7 years – Kids education, Retirement etc).
1. SBI Bluechip – 10K( Since Jun’19)
2. ICICI bluechip – 10K ( since Nov’17)
3. SBI Magnum multicap – 10K( Since Feb’18)
4. HDFC Midcap Opp – 5K (Since Feb’18)
5. HDFC Hybrid – 5K(Since Oct’17)
There’s one SIP of 5K in a regular plan, which has hardly generated any return:
6. ICICI value discovery – 5K ( Since Dec’14)
Debt component of my savings are in EPF ( monthly 25K), PPF ( annually 1.5L).
I have also invested around 25L randomly in sbi ultra short term fund and hdfc short term fund in last 2.5 years. This is for accumulating down payment for home planned in 2021.
Kindly review my portfolio and advise changes, if any.
Dear Raj,
Kindly keep either of 1 or 2.
You may switch from ICICI fund to sbi multicap + HDFC hybrid funds.
If you need the corpus in 2021, you may gradually shift from Short term debt fund to liquid fund/bank FD.
Hey Sreekant,
Thanks for the article.
I am a budding investor and I currently hold the below SIP’s –
Goal – long term wealth accumulation(7-10 years and above)
1) Axis Long Term Equity Fund – Rs. 4000
2) SBI small cap fund – Rs. 750
3) Reliance small cap fund – discontinued
I have started these SIP’s an year ago. I would want to bring new funds into my portfolio and diversify investments. Please suggest if I should change the SIP amounts for my existing portfolio.
Also I am confused between kotak-standard-multicap-fund/Mirae asset emerging blue chip fund /Axis blue chip as all 3 of them have major holdings in financial sector in which I have already invested as part of axis LTE. Please suggest which one I could start afresh and also the initial SIP amount.
Also considering the current trend, should I invest in mid-cap or small-cap or multi-cap? If so , which one would you suggest for this – Axis small cap fund/Axis mid cap.
Ideally how many number of mutual funds is ideal to be held by someone?
Your advice would be really really helpful!!
thanks
Gowthami
Dear gowthami,
May I know the reason for discontinuing Reliance fund? Your experience with mutual fund investments??
You may add one large-cap index Fund. Ex : UTI Nifty Index Fund
If you are ready to take risk, you can add one mid-cap fund or an aggressive hybrid fund.
Regarding the reliance mutual fund, I have started reliance small cap and sbi small cap at the same time. Seeing the mutual fund projections last year, I wanted to continue only with one small cap fund and discontinued the reliance one which was performing consistently bad since last year.
which mid-cap fund would u suggest?
Dear gowthami,
Reliance small cap has a very high Standard deviation (volatility).
In mid-cap category – You may consider HDFC Mid-cap or Axis Mid-cap fund.
Okay thanks 🙂
Among these which one would suit me better – kotak-standard-multicap-fund/Mirae asset emerging blue chip fund /Axis blue chip ?
Dear gowthami,
If you do not want to take much risk then go ahead with Axis bluechip / large-cap based index fund like UTI Nifty index fund.
Mirae is a large-cap+Mid-cap based fund (slightly higher risk when compared to Axis fund).
Axis LTE + Mirae Emerging + kotak, looks good.
You may come out of Small cap funds, if you have lower risk tolerance.
Also do you recommend me to continue reliance small cap fund?
Thanks for the inputs!!
How about axis small cap fund?
Also I am already investing in Axis LTE, do you recommend investing in kotak multi cap fund since the major sector of both the funds is financial and have few same company stocks ?
Dear Gowthami,
Given most of the heavy weights are from financial industry, most of the equity funds are higher exposure to financials.
I am 34 year old working professional, me and my wife both are working. And i would like to create the wealth of 1-2 crore in next 10 years. Hence, investing in below MF’s through SIP worth of 25K per month :-
1. HDFC Top 100 Fund (G) – 3000 (Large Cap)
2. HDFC Mid Cap Opportunities Fund (G) -> 2000 (Small & Mid Cap)
3. ICICI LTEF (Tax Saving) (G) -> 2000 (ELSS)
4. ICICI Prudential Bluechip Fund (G) -> 3000 (Large Cap)
5. SBI Blue Chip Fund Plan (G) -> 2000 (Large Cap)
6. Birla Sun Life Frontline Equity Fund (G) -> 3000 (Large Cap)
7. Kotak Std Multicap (G) -> 4000 (Multicap)
8. Mirae Asset Emerging Bluechip (G) -> 3000 (Large and Mid Cap Fund)
9. Franklin India Prima Fund-Direct Plan (G) ->3000 (Small & Mid Cap)
Recently, I have cancelled SIP in “Franklin India Prima Fund” worth of 3K due to very less return. Now would like to invest that amount in some multi cap fund. Request to suggest any good multicap fund for time horizon of 10 years. I have identified two funds i.e SBI Magnum Multi Cap (G) & Axis Focused 35 (G), please suggest.
Also request to have a look on my portfolio and let me know if I am on right track or not.
Thanks in Advance !!
Dear Amit,
1, 4, 5 & 6 are large-cap oriented Funds. One large cap fund (or) index based large cap fund is fine. Investing in too many that too within the same category is not really beneficial.
For ex : SBI bluechip and Birla Frontline Funds’ portfolios overlap by around 60%.
Kindly read : Mutual Fund Portfolio Overlap Comparison Tools
As your portfolio has bluechip and mid-cap funds, a largecap+mid-cap oriented fund like Mirae Emerging .. may not be required.
The overlap between Mirae fund and SBI bluechip is around 40%.
You may retain one large-cap fund, mid-cap fund (HDFC), Kotak multicap..
Thanks Sreekantha !!!
So, according to you I need to invest only in Large-cap fund, mid-cap fund (HDFC), Kotak multicap??
Also please suggest which Multi cap fund is good among SBI Magnum Multi Cap (G) & Axis Focused 35 (G). Or I do I need to increase amount in Kotak Multicap fund only???
Dear Amit,
Yes. At max, you may have a look at aggressive hybrid fund.
Given a choice, I would pick SBI multicap instead of a focused fund.
But, you may add additional amount to Kotak and can add an hybrid fund instead of adding a multi-cap fund, which can give a balance to your portfolio.
Can you suggest some good hybrid fund?
Dear Amit.. ICICI Equity & Debt Fund (conservative style)
Or HDFC Hybrid / SBI Hybrid ..
I have mentioned about these in the article..
Morningstar and Value-research both have different ways of rating/staring the funds.
e.g. Franklin Prima is 5*gold in Morningstar vs 4* in value-research.
Which one is better to follow ?
What do you personally prefer and why?
Dear Hitesh,
Dont give too much importance to ‘Ratings’.
The fund has been a consistent performer over very long periods.
Hi Sreeknath,
Thanks for the revert and update on the fund.
but my question was more directed to
which one is better to follow? Morningstar or ValueResearch in more accuracy, genuineness, fairness, etc.
and which one would be your 1st choice out of both.
Dear Hitesh,
Each portal has its own features and provisions.
For ex : We can find good details about ‘downside’ ratios from Morning star.
I believe VR star ratings are primarily based on recent performance, whereas morningstar analysis takes account of long-term performance.
Advisable to follow these two and moneycontrol.
Hi, I’m investing monthly 7k thru SIP in SBI bluechip fund around 2 years, here my investment goal or plan is around 10 years – here as per above review – Would like to switch SBI large cap to UTI nifty index large cap fund, here have a query – Shall i need to withdraw all my money from SBI Bluechip and invest into UTI nify index fund ? or Should i stop SBI Blue chip SIP and start investing the same 7k thru sip in uti nift index fund ? Kindly request you to guide on this…hope it will be useful to all the followers …Thanks
Dear Raj,
Considering the tax implications.. you may just stop future SIPs in SBI bluechip and continue with index fund..
Related article : Mutual Fund Taxation rules FY 2019-20
Dear Sreekant,
First of all, thank you very much for publishing various articles in your blog. It is really helpful for us to understand and gain financial literacy.
Anyway, I have a query to you regarding my Portfolio. I am currently having SIP as follows which is created for my long term goals (10 years plus).
1) Axis Long Term Equity Fund – Rs. 12,500
2) Franklin India Equity Fund – Rs. 12,500
3) Franklin Smaller Companies – Rs. 5000
4) ICCI Pru Value Discovery Fund -Rs. 10,000
5) Tata Hybrid Fund – Rs. 12,500
I Have started the above SIP almost 4.5 years back though the initial amount was less than current one. I had gradually increased the SIP amount as and when I could.
Please advise whether my portfolio is okay or would you suggest any changes. In case, if there is suggestion for any changes. what should I do to the current holdings. I don’t required the invested amount as of now so I can hold it long.
I appreciate your advice.
thanks
Muneer Abdulla
Dear Muneer,
Thank you for your appreciation and kind words!
1- Fine
2 – Hold current holdings & may PAUSE your future SIPs. Review its performance for few more quarters.
3 – As of now, you may continue..
4 – Advisable to switch to a generic multi-cap fund.
5 – Not able to beat its benchmark and category avg returns, advisable to switch to other hybrid fund.
Dear Sreekanth,
thank you very much for your kind reply. just one question also, what should I do with the accumulated amount. Should I redeem the units and invest in another fund or should I hold it until I need the amount for my goal.
Dear Muneer,
As suggested, ‘hold’ – you can continue holding the units for some more time in the suggested funds, keep an eye on their performances.
‘Switch’ – you can redeem the units and switch to better ones. Kindly be aware of the tax implications.
Read : Mutual Fund Capital Gain taxation rules AY 2020-21..
THANK YOU VERY MUCH
After much deliberation, I recently consolidated my cluttered portfolio. (Debt portion taken care of, adequate term & health insurance in place). Please do let me know what you think about my equity fund portfolio- which is primarily for my retirement 20 years away.
1. Axis growth opportunities fund (large & mid cap, momentum based, with decent international exposure).
2. PPFAS long term ( multi cap, value oriented, low volatility, with international exposure).
3. UTI NIFTY 50
4. UTI NIFTY NEXT 50 ( 3+4= low cost large, and to some extent mid cap combination, without depending on a fund manager).
All the 4 funds are in equal proportions.
I wanted to to know if my thinking is correct for choosing these funds.
Thanks for taking time to read my comment. A reply would be greatly appreciated……. Kuntal.
Dear Kuntal,
Axis fund : Personally, I dont prefer to invest in a large+mid cab based fund. Also, it is relatively new fund.
2,3&4 are fine. Given a choice, I will include an aggressive hybrid fund to this portfolio.
Hi Sree,
Do you think mid cap are really midcap as they invest in 101th to 250th rank companies. Initially large cap companies have invested in companies ranked till 200th e.g. HDFC Top 200.
– So, my basic concern is how much midcap funds are affected after new categorization? What are your views on it?
– If we have to ignore midcap & go for small cap than do they follow any category e.g. this small cap fund invest in till ranked 500th company? How Valueresearch is categorizing this small cap as Risk Grade as Low or Avg?
Dear Nicolas,
A fund manager especially of a mid-cap fund has to invest in mid/small stocks to generate EXTRA returns (alpha).
If you look at the current allocation of Axis Mid-cap or Franklin Prima funds, they have allocation of around 70 to 80% to midcap stocks.
To understand a fund, one can through its investment objective, portfolio construction and previous performance to certain extent.
For example : L&T emerging fund, small cap fund has an investment objective as – “The Scheme will primarily be a diversified equity fund which will invest predominantly in small cap stocks to generate long term capital appreciation.”
So, its benchmark index is “S&P BSE Small Cap” , so it aims to be in-line with its benchmark portfolio/performance and try to generate superior performance as well.
Hi Sree,
My point is can we really consider the companies ranking from 101 to 250 as midcap. I believe before categorization midcap funds were investing in more lower rank companies and hence were generating higher returns.
Regards,
Nicolas
Dear Nicolas,
Fund’s Portfolio Allocation : It depends on market conditions, FM’s strategy, fund’s investment objective, AUM size etc.,
For ex : TATA Mid-cap has an allocation of around 80% to midcap stocks and 14% is in Small cap based stocks.
One can also consider mid-cap based index funds if not worried about downside protection.
Hi Sree,
Whats your views on HDFC Small Cap & L&T Emerging fund?
Regards,
Abhi
Dear Abhinav,
May I know your investment objective and time-frame?
Objective: Retirement
Time Frame: 15 Yrs
Dear Abhinav,
Both have been performing well and both the funds have almost same return-risk profile.
But do note that the current Fund manager of L&T fund , Mr Lahiri has quit, so need to keep an eye on the fund’s performance (existing investors can continue with it for time-being).
In the “Best Large Cap Mutual Funds 2020-21”, you choose Axis Bluechip Fund vs Mirae Asset Large Cap Fund – Regular Plan which has a longer history of 10yr, plus its # 1 in the 5yr & 10yr category and is a 5*. Could you please clarify why Mirae wasn’t choosen for my understanding.
Dear Hitesh,
Note that Mirae Equity fund was a multi-cap fund till May 2019 and it was changed to a large-cap fund, has been renamed as Mirae Asset Large Cap Fund.
“Many faithful investors have been upset about this decision. “
I ,35 yrs old. I have a son, 6 year old, please advise me, for child education and retirement planning, monthly income 28000, I have sip hdfc hybrid equity, dsp small cap fund 1000/month.
Dear Krishna,
May I know if you have adequate life & health insurance covers?
I have a jeeban anand policy SA 200,000. No health insurance policy. I had also sip absl frontline equity, Franklin smaller companies fund, icici value discovery, hdfc mid cap opportunities. This sip are not running.
Dear Krishna,
I believe that you are ‘under-insured’. You need to immediately take a Term life insurance plan and also have to take a Family floater health insurance plan.
Once you take a Term plan for say Rs 50 lakh or above, you may discontinue Jeevan Anand policy (if you are unable to afford premiums for both policies).
Kindly read :
* If Life is unpredictable, INSURANCE can’t be optional
* Top 5 Best Online Term Life Insurance Plans 2020 | Comparison & FAQs
* List of Articles on the key Components of Personal Financial Planning
I am interested sip , so please advise me sip for 6 yrs son, and retirement.
Dear Krishna,
You may continue with HDFC Hybrid and DSP small cap funds..kindly be aware of the high risks (volatility) associated with small cap funds.
You may add one Large-cap index fund to your portfolio.